BofA Securities India settled proceedings with SEBI for Rs 58.5 lakh on May 4, 2026, for violating insider trading norms. The merchant banker failed to maintain Structured Digital Database (SDD) as prescribed under Prohibition of Insider Trading regulations. SEBI issued show-cause notice on May 26, 2025. BofA filed settlement application on July 1, 2025, without admitting violations. High Powered Advisory Committee recommended settlement amount, approved by whole-time members panel. Settlement disposed adjudication proceedings under SEBI Settlement Regulations.

This case demonstrates SEBI's enforcement approach through settlement mechanisms rather than lengthy adjudication. The Structured Digital Database requirement under PIT regulations is crucial for merchant bankers to maintain audit trails of price-sensitive information access. Settlement procedures allow entities to resolve violations by paying prescribed amounts without admitting guilt, expediting resolution while deterring future violations. The Rs 58.5 lakh settlement reflects proportionate penalty for procedural compliance failure rather than actual insider trading. SEBI's High Powered Advisory Committee evaluates settlement proposals, ensuring consistency in enforcement. The 'without admitting or denying' clause protects entities from collateral consequences while achieving regulatory objectives. This mechanism balances deterrence with practical resolution, avoiding prolonged litigation costs for both regulator and regulated entities. The settlement creates precedent for similar SDD maintenance violations by merchant bankers, establishing benchmark penalties. SEBI's whole-time member panel approval ensures senior-level oversight of settlement decisions. Post-settlement, entities face enhanced scrutiny, and breach of settlement terms triggers resumed proceedings, maintaining enforcement credibility.